NEW YORK (TheStreet) -- Microsoft (MSFT) - Get Report stock is up 0.70% to $51.95 in pre-market trading on Wednesday after the technology company announced plans to streamline its smartphone business and eliminate up to 1,850 jobs by July 2017.
The Redmond, WA-based company will take a $950 million restructuring charge in the fiscal 2016 fourth quarter. Approximately $200 million will be related to severance payments.
About 1,350 employees at Microsoft Mobile Oy in Finland will be affected by the layoffs, with an additional 500 employees affected worldwide.
"We are focusing our phone efforts where we have differentiation -- with enterprises that value security, manageability and our Continuum capability, and consumers who value the same," CEO Satya Nadella said in a statement. "We will continue to innovate across devices and on our cloud services across all mobile platforms."
Microsoft will provide more information about the charges related to the layoffs on July 19 with the release of its fiscal fourth quarter financial report.
Separately, Microsoft has a "buy" rating and a letter grade of B+ at TheStreet Ratings because of the company's largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, solid stock price performance and expanding profit margins.
You can view the full analysis from the report here: MSFT
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